Author: Cezary Dziemian 2018-09-11 18:55:41
Published on: 2018-09-11T18:55:41+00:00
The context of the conversation revolves around the weaknesses of using Lightning Network (LN) as a means of receiving funds, and the potential implementation of dual-funded channels. The weaknesses of the current method include the requirement for the merchant to possess all funds they wish to receive, a longer process that requires two on-chain transactions, and the need for point 3 to be implemented in a trustless way. The implementation of dual-funded channels would require the initiator to pay fees on-chain and mitigate privacy leakage by requiring the initiator to put up greater than or equal capacity requested from the initiatee. The details concerning dual-funded channels may be hashed out at the November lightning-dev summit, with implementation potentially taking a year or more after that. The conversation also explores an alternate solution to the issue of incoming capacity, namely off-to-onchain swaps, which can be used to move funds on a single channel back on-chain. This alternate solution can be implemented today, although there are no good trustless off-to-onchain swap services currently available. It allows for the repetition of the process until the service runs out of onchain funds to swap with, or the initiator has enough incoming capacity.
Updated on: 2023-05-25T02:32:26.120395+00:00